Mexico's shale ambitions will have to wait

Subject

Mexico's massive untapped shale oil and gas reserves.

Significance

Mexico has enough 'tight oil' and gas reserves to make the country energy independent again, according to some estimates. However, finding and developing those reserves will be a long, costly and high-risk endeavour. Unfortunately for Mexico's energy policymakers, the oil price crash has sapped the industry's appetite and ability to take on the challenge. It will be years before Mexico's shale industry regains the momentum that had started to build before the oil industry downturn.

Impacts

• Mexico will grow increasingly reliant on US natural gas imports, providing opportunities for pipeline and other infrastructure builders.
• Shale development could bring economic development to some of Mexico's poorest regions.
• A growing crop of domestic oil companies stands to gain from tight oil production.